Answer: c. Set up 3 separate savings accounts for the first 3 goals and a retirement investment for the 4th
Step-by-step explanation:
The options are:
a. Put as much as he can every month into an investment, like shares of a company, so his money grows quickly
b. Keep all the money in his checking account so that he can spend it in the different categories as needed
c. Set up 3 separate savings accounts for the first 3 goals and a retirement investment for the 4th
d. Set up 4 separate savings accounts
Based on the information given in the question, the best startegy for Malcolm is to set up 3 separate savings accounts for the first 3 goals and a retirement investment for the 4th.
Since the first three goals include saving for an emergency fund ($5000), saving for a flight home to see his parents for the holidays ($450), and a downpayment on a new car ($3000), the best thing he should do is to set up 3 savings account for the first three goals.
The last goal relates to his retirement which is 2% of his monthly take-home pay, therefore he should set up a retirement investment for the 4th goal.
